If the aggregate supply is ________, an increase in the price level does not change the unemployment rate.
A. positively sloped
B. horizontal
C. negatively sloped
D. vertical
Answer: D
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The rational expectations hypothesis suggests that
A) unanticipated fiscal policy actions are more powerful than monetary policy actions. B) fiscal policy actions only work when accompanied by changes in the money supply. C) anticipated monetary policy actions are more powerful than fiscal policy actions. D) anticipated fiscal and monetary policy actions are not likely to achieve their stated aims.
A not-for-profit organization conducts several workshops to prevent drug addiction among teenagers. This is an example of ________
A) indoctrination B) backward induction C) anchoring D) sniping
In the aggregate demand-aggregate supply framework, how does an increase in the price level affect potential GDP?
What will be an ideal response?
Wearing a suit to a job interview is an example of a:
A. positive signal. B. negative signal. C. positive screen. D. negative screen.